Financial information is presented below: Operating Expenses $ 60,000
Sales Revenue 225,000
Cost of Goods Sold 135,000
The gross profit rate would be
A) .133.
B) .400.
C) .600.
D) .733.

Name: Financial information is presented below: Operating Expenses $ 60,000 Sales Revenue 225,000 Cost of Goods Sold 135,000 The gross profit rate would be A) .133. B) .400. C) .600. D) .733.
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Question

Quizplus · Accepted Answer

Gross profit rate = (Sales Revenue - Cost of Goods Sold) / Sales Revenue = (225,000 - 135,000) / 225,000 = 0.4 or 40%.

Financial Information Is Presented Below: Operating Expenses $ 60,000